These are body of doctrines commonly associated with the theory and procedures of accounting serving as an explanation of current practices .
They act as guide for selection of accounting procedures or conventions where alternative exists. Accounting principle must satisfy following conditions:-
2.They must be Simple, Understandable and Explanatory.
3.They must be followed consistently.
4.They should Reflect Future Predictions.
5.They should be Informational for users.
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